Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Oil Giant Aramco Regains Top Spot From Apple as Tech Rally Fades

Published 14/09/2020, 08:05
Updated 14/09/2020, 09:00
© Reuters.

© Reuters.

(Bloomberg) -- Saudi Aramco (SE:2222) is once again the world’s most valuable company after its market capitalization rose a shade above Apple Inc. amid a slump in U.S. technology shares.

The state oil giant’s stock has gained 1.1% in Riyadh this month, despite Brent crude dropping 12% to below $40 a barrel as concerns about an acceleration in coronavirus infections mount.

Meanwhile, Apple shares (NASDAQ:AAPL) have fallen nearly 17% in September. That’s almost taken the stock into bear-market territory -- which is a 20% drop from a recent peak -- and the company’s market value has declined to $1.9 trillion from $2.3 trillion.

Apple and Aramco are the only two companies to have achieved valuations of $2 trillion. Aramco, the world’s largest oil producer, peaked at just above that level in mid-December, shortly after its record initial public offering. Apple overtook it in July as technology firms soared amid massive U.S. monetary and fiscal stimulus to counter the fallout from the virus.

Aramco’s share price has been resilient partly because of its pledge to pay a $75 billion dividend this year. That would be more than five times what Apple’s paid out to shareholders in the past four quarters.

©2020 Bloomberg L.P.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.